Investing.com - Natural gas prices shot up on Monday after updated weather-forecasting models called for a quick return of seasonably warm temperatures to edge out a cool snap in the U.S.
Elsewhere, Tropical Storm Cristobal appeared to dodge the U.S. coast, though investors kept their eyes on another system hinting at formation in the Gulf of Mexico.
Tropical weather systems in the Gulf of Mexico often send prices rising, as rigs are evacuated and supply slows.
On the New York Mercantile Exchange, natural gas futures for delivery in October traded at $3.976 per million British thermal units during U.S. trading, up 2.38%. The commodity hit a session low of $3.860, and a high of $3.983.
The October contract settled up 1.20% on Friday to end at $3.883 per million British thermal units.
Natural gas futures were likely to find support at $3.732 per million British thermal units, the low from Aug. 17, and resistance at $3.988, Thursday's high.
Computer models gave Tropical Storm Cristobal a decent chance of strengthening into a hurricane, though the system should remain off the U.S. coast and far away from any natural gas rigs.
Still, computer models called for the possibility that a cold front could spin off a low pressure system in the coming days, which sent natural gas prices rising due to concerns rough weather will mean closed gas rigs.
Weather forecasts for the lower 48 states supported the commodity was well, as seasonably warm temperatures could return over parts of the eastern half of the U.S..
Hot temperatures over the southern U.S. and into the Midwest will gradually ease after Monday, though warmer temperatures will return to the central and eastern U.S. immediately after, Natgasweather.com said in its Monday Morning Update.
Uncertainty, however, kept prices elevated.
"The pattern is sloppy so expect daily changes in weather models and national forecasts on how the situation unfolds. We still expect the southern U.S. to cool several degrees during the first few weeks of September, which we expect will increase bearish weather headwinds," Natgasweather.com reported.
"However, we do caution trading over the next several days could be choppy due to hot temperatures over the central U.S. and the coming expiration of the September contract."
Elsewhere on the NYMEX, light sweet crude oil futures for delivery in October were down 0.27% at $93.40 a barrel, while heating oil for October delivery were up 0.15% at $2.8385 per gallon.